NEW YORK (Reuters) - The average retail price of a gallon
of regular grade gasoline in the U.S. rose to a new record high
as the cost of a barrel of crude oil price continued its
ascent, an industry analyst said on Sunday.

The U.S. average retail regular gasoline price rose to
$3.7929 a gallon on May 16, up nearly 17 cents in the past two
weeks, according to the nationwide Lundberg survey of about
7,000 gas stations.

In two areas -- Chicago and New York's Long Island --
prices soared to an average of more than $4 a gallon for the
first time, survey editor Trilby Lundberg said.

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The gasoline price could rise to $4 a gallon on a national
average basis, she forecast. "The refinery margin on gasoline
is so poor, I think the upward pressure on the refining margin
will push up the price at the pump, even if crude oil does
not," she said in an interview.

Refiners, who process crude oil to make gasoline, have been
battered by slim margins for the past six months as they have
struggled to pass on record crude oil prices to consumers. Some
have mothballed refineries in response to the weak margins.

Crude oil prices have risen to records this year, keeping
gasoline prices high. U.S. crude settled above $126 a barrel
for the first time on Friday. On the New York Mercantile
Exchange, June crude closed up $2.17 at $126.29 a barrel.

"Gasoline demand will rise seasonally during June, July and
August as the warmer, more benign weather makes it safer and
more inviting for driving," Lundberg said. "We will be
consuming all that domestic refiners can produce and what we
cannot we will be importing from other countries during summer
demand."

Lundberg said the national average of $3.7929 was a new
all-time record high both in today's dollars and on an
inflation-adjusted basis.

At $4.0675 a gallon, Chicago had the highest average price
for retail gasoline in the survey, which focuses on
metropolitan areas. Long Island had the second highest, with
$4.0091. The lowest price was $3.4824 a gallon in Tucson,
Arizona.